SR-8A (13)
FINANCE DC 9 \flnance\treas\share\lItr98
Council Meeting September 9. 1997
Santa Monica, CA
8A
SEP 0 9 1997
STAFF REPORT
TO Mayor and City Council
FROM City Staff
SUBJECT ORDINANCE SETTING THE FY 1997-98 TAX RATE FOR THE MAIN
LIBRARY IMPROVEMENTS PROJECT GENERAL OBLIGATION BONDS
INTRODUCTION
ThiS report recommends that the City Council adopt the attached ordinance setting the FY
1997 -98 tax rate for the 1990 Mam Library I mprovements Project General Obligation
Bonds at $ 004705 per $100 of assessed valuation
BACKGROUND
The City Issued $4 5 million In General Obligation Bonds on Apnl1 0, 1990 for the purpose
of meeting the Immediate parking and future expansion needs of the Main Library As
specified by Section 606 of the Santa MOnica City Charter and SectIon 43632 of the State
of Callforma Government Code, the annual debt service on these General Obligation
Bonds IS to be payable from an overnde on the Property Tax that IS levied annually dUring
the penod that the bonds are outstanding
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SEP 09 1997
8A
'"
DISCUSSION
The City Treasurer has calculated the necessary property tax override to be $ 004705 per
$100 of assessed valuation, whIch IS not slgmficantly different from the FY 1996-97 rate
Calculation of the FY 1997-98 property tax rate IS as follows
$402,537
Net Req ulrements for FY 1997-98 (Debt
less prior year adjustments)
(19,713)
Projected Unsecured Property Tax
revenues for FY 1997-98*
$382,824
Projected Net Debt Service Requirements to
be Financed by a Levy on Secured Property
for FY 1997-98
$382.824
$8.136,496,202**/$100 = Tax Rate of$ 004705
*
Unsecured revenues are calculated applYing the prior year secured tax rate
to current year assessed valuation of unsecured property (004683/100 x
5420,953,449)
**
Reflects total City secured assessed valuation for FY 1997-98 adjusted to
reflect projected delinquent parcels
In accordance with Section 1501 of the City Charter, the City uses the County system of
assessment and collection of property taxes
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BUDGET/FINANCIAL IMPACT
Adoption of the attached ordinance has no Impact on the FY 1997-98 budget The
Property Tax Impact of thiS override levy on an average resIdence which has a secured
value of $208,600 In FY 1997-98 IS $9 81 per year, which IS $ 04 higher than m
FY 1996-97
RECOMMENDATION
It IS recommended that the City Councrllntroduce and adopt the attached ordinance setting
the FY 1997-98 tax rate for the Mam Library Improvements Project General Obligation
Bonds at $ 004705 per $100 of assessed value
Prepared by
Mike Denms, DIrector of Finance
Ralph Bursey. Revenue Manager/City Treasurer
David Carr, Assistant City Treasurer
Attachment Ordmance
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a~~y\~un~\laws\ntt\:~brary 4
Cl~y Co~nc~: Meet~ng 9-9-97
Santa Monlca, Ca:~fornla
ORDINANCE NUMBER 1882 eCCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF SANTA MONICA SETTING THE 1997-98
TAX RATE FOR THE MAIN LIBRARY IMPROVEMENTS
PROJECT GENERAL OBLIGATION BONDS
~1EEREAS, at the November 8, 1988 general elec~lon, by a
favorable vote of ITore ~han two thirds of all the vo~ers vctlng on
the proposltlO:l., t:--_e lSSuance of General Obllgat::..on Bonds (the
"Bonds ") In the prlr.clpa::' amount of $4.5 mlll:.on was authorlzed for
the purposes of flnanclng acqulslt:.lon and lmprovemer:'t of real
property for Mee~lng parKlng and future expanSlon needs of the Maln
Llbrary; anci
WH3REAS, on ?ebruary .u, 1990, the Clty Cour:cll adopt.ed
Resol-..l-=lor_ NU'T'ber 7976 (CCS) {liThe 30::1d ResolutlO::"'~, author:.z::..ng
the lssuance 0: such Bo~ds ar:a such issuance and sale 0: t~e Bonds
occurred on Aprll 10, 1990, a:l.d
WHEREAS, the C.:.. ty CounCll of t.he Cl ty of Santa Monlca lS
empowered and obllgated to le~~ ad valorew taxes for the payment of
sald BonGS and the ~n'terest thereon, upon all property wlthlD the
Clty s~bJect to taxaClor: by the Cl~Y; and
WHEREAS, ln accordance wlth the Bond Resolutlon, the Clty
COUDCll lS required to :lX, ~evy and collect annually untl~ all of
t~e Bonds are pald or untll ~here lS a sum ~n the Cit.y treasury set
apart for that purpose sufflClent to meet al: sums comlng due for
prlnclpal and lnterest on sald Bonds, a tax sufflclenL to pay the
annua~ lnterest on the Bonds and such part of prlnclpal as the same
shall become due; and
WHER3AS, the taxes req~lred to be levled and collected by the
Bond Resolutlon shall be In addltlon to all otner taxes ~ev~ed for
Clty purposes, shall be collected at the tlme and lD the ~anner as
other City ad valore~ taxes are collected, and shall be used for no
p'...:rpose other than payment of the Bonds and accrued lnterest
thereon,
NOW, ~HEREFORE, THE C~TY COUNCIL OF THE CITY OF S~~TA MONICA
DOZS ORDAIN AS FOLLOWS
.
SECTIO~ 1 The Cl~Y Cc~nc~l ~ereby se=s ~he ?lsca: ~ea~ :997-
98 ad va~ore~ Tax Rate for t~e ~al~ Llb~a~y IT.p~ovements ?rcJ2c=
General Cbllga~lon Bonds Serles 199C at $.Q04705 per $108 08 of
assessed value ::or prope~ty :::"ocated wlthln the C:.ty c:: Santa
V;onlca
SECTION 2 TtlS Oralnance shall take effect ~por adopt:.on
pursuant to Santa MC~lca Charter Sectlon 619(C)_
S~C'I:::ON 3. T:'1.e fof;ayor sha:::"::" slgn and the C1CY Clerk s~all
at test to ':~e passage of th:.s Oralnance. The Cl ty Clerk shall
cause the sa'Te to be publ:.shed once ln the offlclal newspaper
wlthln 15 days after lts adoptlon.
AP~ROV~D AS ~O FORM:
~"'
_ ... -'-'L
YARSPili JONES V;OVTR:E
Cl-ty Attcn:ey
2
State of Callforma )
County of Los Angeles) ss
CIty of Santa MonIca )
ffOM^ ~
~O'CoITnor,~fayor
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\,
L Mana M Ste\vart Crty Clerk of the Cny of Santa Momca, do hereby certIfy that the foregomg
Ordmance ~o 1882 (CCS) had ns first readmg and was adopted on September 9. 1997. by the
followmg vote
Ayes
CouncIl members
Ebner. FeInsteIn. Genser. Rosenste:J.n,
Holbrook. Mayor O'Connor.
~oes
CouncIl members
Kone
Abstam
Councll members
None
Absent
CouncIl members
Greenberg
ATTEST:
.~~~~
I
Mana M Stewart. CIty Clerk